Talk:Demand deposit
 | This article is rated Start-class on Wikipedia's content assessment scale. It is of interest to the following WikiProjects: | ||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||
Money supply
editSuppose it is the year 1900. If a bank does not offer checking but does take in deposits and pays interest to customers, and provides customers their money on demand in the form of cash, are those deposits part of the money supply? Because this sentence suggests they are not. "Demand deposits are usually considered part of the money supply, as they can be used, via checks and drafts, as a means of payment for goods and services and to settle debts. "
--Atheros1 (talk) 22:11, 18 November 2011 (UTC)
- Savings deposits are reported separately by financial institutions on the FR 2900 report and show up as M2 money supply rather than M1 money supply. 72Dino (talk) 22:26, 18 November 2011 (UTC)
- Thank you for the reply. That is the only difference between savings accounts and checking accounts? The fact that checking is not available on the savings account? And that is enough to move it to M2? --Atheros1 (talk) 07:59, 19 November 2011 (UTC)
- The two accounts are for very different purposes and subject to different regulations (e.g., Reg D). You may want to review the Transactional account, Savings account, and Money supply articles for more information. Demand deposits are part of both M1 and M2, so I think the sentence that you were asking about in this article is appropriate. 72Dino (talk) 14:31, 19 November 2011 (UTC)
- Thank you for the reply. That is the only difference between savings accounts and checking accounts? The fact that checking is not available on the savings account? And that is enough to move it to M2? --Atheros1 (talk) 07:59, 19 November 2011 (UTC)
Demand deposit not equal to Bank money
editOn the Money article it links to this page via 'bank money' redirect. It says bank money is demand deposit (current) accounts and savings accounts. But demand deposit doesn't include savings? Jonpatterns (talk) 12:01, 11 March 2014 (UTC)
Clarification needed
editFrom the article: "The money supply of a country is usually defined to consist of currency plus demand deposits" But then: "During times of financial crisis, bank customers will withdraw their funds in cash, leading to a drop in demand deposits and a shrinking of the money supply"
So, if the money supply consists of currency plus demand deposits, how does transforming the composition (demand deposit into currency) shrink the overall money supply? Of course, it's easy to see how a bank-run would cause stress for a particular bank, but that was not what was stated. — Preceding unsigned comment added by 142.161.137.88 (talk) 19:37, 11 August 2019 (UTC)